Visa Closes Loophole on Meme Coin Purchases
- Visa is ending a loophole that allowed meme coin purchases via Crossmint to be coded as digital media.
- The change follows a challenge by Chase over misclassified transactions that earned rewards.
- Meme coin transactions must now be processed as crypto transactions, subject to Visa’s rules.
- Processors have a grace period ending next week to comply with the new coding requirements.
Visa is addressing a loophole in meme coin purchases through Crossmint, which allowed these transactions to be incorrectly classified and earn rewards under digital media codes. This move comes after Chase flagged a transaction for being misclassified, prompting a review by the New York attorney general’s office.
Going forward, meme coin purchases will need to be processed under crypto transaction codes, eliminating the possibility of earning standard credit card rewards on these purchases. Processors are expected to implement this change by next week. (Source)
